Mher Grigoryan on Gas Price Increase

The price of gas will not increase for the vulnerable population, said Deputy Prime Minister Mher Grigoryan during a conversation with reporters. He noted that the gas price at the border will not change for 2022, but there is a situation where a formula in a contract signed back in 2013 will come into effect starting in 2022.

“According to the formula, the gas price at the border is calculated based on calorific value,” said the Deputy Prime Minister.

Mher Grigoryan pointed out that the gas tariff is formed from several components, the most important of which is the price at the border. “Now, based on calorific value, the potential additional cost is not so significant that it cannot be smoothed out within the remaining tariff plan,” he elaborated.

According to the Deputy Prime Minister, businesses should wait to see what tariff plan will emerge from the discussions of the Public Services Regulatory Commission, and then they will speak further. “But I believe that the difference in gas prices at the border and globally is so significant that, regardless of everything, there will be no competitive shock for Armenian producers. Nevertheless, the gas price affects not only our producers but also the gas-consuming producers in our region. The price of gas has increased for everyone, and there are countries where it has risen significantly more than it could potentially increase for businesses in Armenia. I reiterate, I do not think that this will have a competitive shock effect on our businesses that consume a lot of gas or electricity at least for 2022,” stated Mher Grigoryan.

He mentioned that there is a consensus on the unified gas price within the EAEU framework and that it would not be difficult to reach that consensus, but debates are ongoing regarding the gas supply tariff. “I hope that there will be unity on this issue within the EAEU area,” Grigoryan noted.